13 TRADE AND OTHER RECEIVABLES
|
Accounting policy Trade and other receivables are carried at amortised cost, less any allowances for uncollectible amounts. They are included in current assets, except for maturities greater than 12 months after the balance sheet date. These are classified as non-current assets. The Group manages credit risk through credit limits which require authorisation commensurate with the size of the limit and which are regularly reviewed. Credit limit decisions are made based on available financial information and the business case. Significant receivables are regularly reviewed and monitored at Group level. The Group has no significant concentration of credit risk, with exposure spread over a large number of customers and geographies. Furthermore, the Group’s principal customers are backed by government and public or private medical insurance funding, which historically represent a lower risk of default. The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable. The Group does not hold any collateral as security. |
|
|
|
2017 |
|
2016 |
|
2015 |
|
|
|
|
$ million |
|
$ million |
|
$ million |
|
|
Trade and other receivables due within one year |
|
|
|
|
|
|
|
|
Trade receivables |
|
1,125 |
|
1,042 |
|
1,003 |
|
|
Less: provision for bad and doubtful debts |
|
(69) |
|
(54) |
|
(64) |
|
|
Trade receivables – net |
|
1,056 |
|
988 |
|
939 |
|
|
Derivatives – forward foreign exchange, currency swaps and interest rate contracts |
|
28 |
|
48 |
|
33 |
|
|
Other receivables |
|
92 |
|
76 |
|
83 |
|
|
Prepayments |
|
82 |
|
73 |
|
83 |
|
|
|
|
1,258 |
|
1,185 |
|
1,138 |
|
|
Due after more than one year |
|
|
|
|
|
|
|
|
Other non-current assets |
|
16 |
|
– |
|
– |
|
|
|
|
1,274 |
|
1,185 |
|
1,138 |
|
Trade receivables are classified as loans and receivables. Management considers that the carrying amount of trade and other receivables approximates to the fair value.
The provision for bad and doubtful debts is based on specific assessments of risk and reference to past default experience. The bad debt expense for the year was $17m (2016: $7m expense, 2015: $25m expense).
Other non-current assets primarily relate to long-term prepayments.
The amount of trade receivables that were past due was as follows:
|
|
|
2017 |
|
2016 |
|
2015 |
|
|
|
|
$ million |
|
$ million |
|
$ million |
|
|
Past due not more than three months |
|
225 |
|
142 |
|
154 |
|
|
Past due more than three months and not more than six months |
|
65 |
|
51 |
|
45 |
|
|
Past due more than six months and not more than one year |
|
66 |
|
70 |
|
57 |
|
|
Past due more than one year |
|
105 |
|
54 |
|
53 |
|
|
|
|
461 |
|
317 |
|
309 |
|
|
Neither past due nor impaired |
|
664 |
|
725 |
|
694 |
|
|
Provision for bad and doubtful debts |
|
(69) |
|
(54) |
|
(64) |
|
|
Trade receivables – net |
|
1,056 |
|
988 |
|
939 |
|
Movements in the provision for bad and doubtful debts were as follows:
|
|
|
2017 |
|
2016 |
|
2015 |
|
|
|
|
$ million |
|
$ million |
|
$ million |
|
|
At 1 January |
|
54 |
|
64 |
|
47 |
|
|
Exchange adjustment |
|
3 |
|
(3) |
|
(3) |
|
|
Acquisitions |
|
1 |
|
– |
|
– |
|
|
Net receivables provided during the year |
|
17 |
|
7 |
|
25 |
|
|
Utilisation of provision |
|
(6) |
|
(14) |
|
(5) |
|
|
At 31 December |
|
69 |
|
54 |
|
64 |
|
Trade receivables include amounts denominated in the following major currencies:
|
|
|
2017 |
|
2016 |
|
2015 |
|
|
|
|
$ million |
|
$ million |
|
$ million |
|
|
US Dollar |
|
418 |
|
416 |
|
362 |
|
|
Sterling |
|
54 |
|
57 |
|
58 |
|
|
Euro |
|
212 |
|
193 |
|
192 |
|
|
Other |
|
372 |
|
322 |
|
327 |
|
|
Trade receivables – net |
|
1,056 |
|
988 |
|
939 |
|